Tilray (TLRY) posted its second quarter results revealing it generated a record net revenue of $193+ million, just short of Wall Street expectations. Like many in the U.S., the company is awaiting possible reclassification of Marijuana to a 'Schedule III' drug, which would have wide-reaching ramifications for taxation and research, and change business models for some.

Tilray CEO Irwin Simon joins Yahoo Finance to give insight into what might happen to his business if the Biden administration follows through with its pursuit of get the plant reclassified, and in turn getting the Drug Enforcement Agency to ease restrictions.

Simons comments: "I think it would help bringing in institutional shareholders that actually can hold the stock, for a lot of shareholders today or institutions that cannot hold cannabis stock, and it would help us with the banking world today because right now, any of our profits or proceeds from our Canadian cannabis business, even though Canada is legal, we can not use any of those proceeds within our US operations."

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Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: One big question, Irwin, out there is these US health officials recommending easing restrictions on marijuana, reclassifying marijuana as a Schedule III drug. How do you think that plays out? Or when-- and what would it mean for Tilray as a business?

IRWIN SIMON: It would mean a lot for Tilray. If you step back, number one, we have a major medical cannabis business in Europe and a major medical cannabis business in Canada. And taking that know-how and taking all those years of what we've built here in regards to working with the medical professions with prescriptions and bringing that to the US would help us tremendously to build a good medical cannabis business here in the US.

I think it would help bringing in institutional shareholders that actually can hold the stock where a lot of shareholders today or institutions cannot hold cannabis stock. And it would help us with the banking world today, because, right now, any of our profits or proceeds that come from our Canadian cannabis business, and even though Canada is legal federally, we cannot use any of those proceeds within our US operations.

JULIE HYMAN: So I guess, Simon, what do you think the likelihood then? Is that-- that's something that's been reported upon as a possibility. Where do you think we are a year from now when it comes to regulation?